MORNBFI Vol. 1 - Planters Development Bank

§ 4328Q.509.12.31officer, and/or stockholder of the lendingQB, except where such director, officer orstockholder sits in the board of directors oris appointed officer of such corporation asrepresentative of the QB.c. Exclusions from the ceilings.Loans, other credit accommodations andguarantees secured by assets consideredas non-risk under existing BSP regulationsas well as interbank call loans shall beexcluded in determining compliance withthe ceilings prescribed under Item “b”above.d. Procedural requirements. Thefollowing provisions shall apply if a QBgrants a loan, other credit accommodationor guarantee to any of its subsidiaries andaffiliates.(1) Approval of the board, when toobtain. Except with prior written approvalof the majority of all the members of theboard of directors, no loan, other creditaccommodation and guarantee shall begranted to a subsidiary or affiliate.(2) Approval by the board, howmanifested. The approval shall bemanifested in a resolution passed by theboard of directors during a meeting andmade of record.(3) Determination of majority of all themembers of the board of directors. Thedetermination of the majority of all themembers of the board of directors shall bebased on the total number of directors ofthe QB as provided in its articles ofincorporation and by-laws.(4) Contents of the resolution. Theresolution of the board of directors shallcontain the following information:(a) Name of the subsidiary or affiliate;(b) Nature of the loan or other creditaccommodation or guarantee, purpose,amount, credit basis for such loan or othercredit accommodation or guarantee,security and appraisal thereof, maturity,interest rate, schedule of repayment andother terms;(c) Date of resolution;(d) Names of the directors whoparticipated in the deliberation of themeeting; and(e) Names in print and signatures of thedirectors approving the resolution: Provided,That in instances where a director whoparticipated in the board meeting and whoapproved such resolution failed to sign, thecorporate secretary may issue a certificationto this effect indicating the reason for thefailure of the said director to sign theresolution.(5) Transmittal of copy of boardapproval; contents thereof. A copy of thewritten approval of the board of directors,as herein required, shall be submitted to theappropriate department of the SES withintwenty (20) business days from the date ofapproval. The copy may be a duplicate ofthe original, or a reproduction copy showingclearly the signatures of the approvingdirectors: Provided, That if a reproductioncopy is to be submitted, it shall be dulycertified by the corporate secretary that it isa reproduction of the original writtenapproval.e. Reportorial requirements. Each QBshall maintain a record of loans, other creditaccommodations and guarantees coveredby these regulations in a manner and formthat will facilitate verification of suchtransactions by BSP examiners.The appropriate department of the SESmay require QBs to furnish such data orinformation as may be necessary forpurposes of implementing the provisionsof the foregoing rules.f. Sanctions. Without prejudice to thecriminal sanctions under Section 36 of R.A.No. 7653 (The New Central Bank Act), anyviolation of the provisions of the foregoingrules shall be subject to any or all of thefollowing sanctions:(1) Restriction or prohibition on the QBfrom declaring dividends for noncompliancewith the herein prescribedQ RegulationsPart III - Page 26Manual of Regulations for Non-Bank Financial Institutions